[Federal Register Volume 68, Number 157 (Thursday, August 14, 2003)]
[Rules and Regulations]
[Pages 48531-48543]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-20378]


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DEPARTMENT OF ENERGY

10 CFR Parts 1015 and 1018

RIN 1901-AA98


Collection of Claims Owed the United States

AGENCY: Department of Energy.

ACTION: Direct final rule.

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SUMMARY: This direct final rule adopts revisions to the regulations on 
Collection of Claims Owed the United States to conform to the Federal 
Claims Collection Standards issued by the Department of the Treasury 
and the Department of Justice. The revisions clarify and simplify the 
Department of Energy's debt collection standards and reflect changes to 
Federal debt collection procedures that were made by the Debt 
Collection Improvement Act of 1996 and the General Accounting Office 
Act of 1996.

DATES: This direct final rule will be effective November 12, 2003 
without further action, unless significant adverse comment is received 
by September 15, 2003. If significant adverse comment is received, the 
Department will publish a timely withdrawal of the rule in the Federal 
Register. (See also ``Discussion of Direct Final Rulemaking'' in 
Section III of the SUPPLEMENTARY INFORMATION section of this notice.)

ADDRESSES: All comments should be addressed to Helen O. Sherman, 
Director, Office of Finance and Accounting Policy (ME-10); Office of 
Management, Budget and Evaluation, U.S. Department of Energy, 1000 
Independence Avenue, SW., Washington, DC 20585.

FOR FURTHER INFORMATION CONTACT: Philip R. Pegnato, Team Leader, 
Management Accounting and Cash Management Team, U.S. Department of 
Energy, at (301) 903-9704; or Susan A. Donahue, Accountant, Management 
Accounting and Cash Management Team, U.S. Department of Energy, at 
(301) 903-4666.

SUPPLEMENTARY INFORMATION:

I. Background

    The Department of Energy (DOE) today revises and consolidates its 
debt collection regulations that are codified at 10 CFR parts 1015 and 
1018. The principal purpose of this rulemaking is to conform DOE's 
regulations to the government-wide debt collection regulations that 
were published by the Treasury and Justice Departments (65 FR 70390, 
November 22, 2000). Consistent with that purpose, today's revised 
regulations largely track the wording of the government-wide 
regulations. Any significant differences are discussed below. The 
Secretary of Energy has approved the revised regulations for 
application to all divisions of DOE including the National Nuclear 
Security Administration.
    More specifically, this rulemaking is intended:
    (a) To reflect changes to Federal debt collection procedures made 
by the Debt Collection Improvement Act of 1996 (DCIA), Public Law 104-
134, 110 Stat. 1321, 1358 (April 26, 1996) as part of the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996; and the 
publication of the revised Federal

[[Page 48532]]

Claims Collection Standards (FCCS) under new chapter IX, Title 31, Code 
of Federal Regulations (65 FR 70390, November 22, 2000) by the 
Department of the Treasury (Treasury) and the Department of Justice 
(DOJ).
    (b) To reflect the detailed guidance issued by Treasury and 
codified at 31 CFR part 285, Debt Collection Authorities under the 
DCIA. See, e.g., Offset of Tax Refund Payments to Collect Past-Due, 
Legally Enforceable Non-Tax Debt (63 FR 46140, Aug. 28, 1998); Offset 
of Federal Benefit Payments to Collect Past-Due, Legally Enforceable 
Non-Tax Debt (63 FR 71204, Dec. 23, 1998); Salary Offset (63 FR 23354, 
Apr. 28, 1998); Administrative Wage Garnishment (65 FR 51867, Oct. 11, 
2001); Transfer of Debts to Treasury for Collection (64 FR 22906, Apr. 
28, 1999); Barring Delinquent Debtors From Obtaining Federal Loans or 
Loan Insurance or Guarantees (63 FR 67754, Dec. 8, 1998).
    (c) To incorporate 10 CFR part 1018, Referral of Debts to IRS for 
Tax Refund Offset, into 10 CFR part 1015, Collection of Claims Owed the 
United States.

II. Discussion of Direct Final Rule

    Revised 10 CFR part 1015 includes the following major changes from 
DOE's existing regulations:
    (1) The content of 10 CFR part 1018, Referral of Debts to IRS for 
Tax Refund Offset, was merged into 10 CFR part 1015.
    (2) The revised 10 CFR part 1015 reflects the elimination of the 
Comptroller General's role in Federal debt collection.
    (3) The revised 10 CFR part 1015 reflects the requirement that DOE 
use government-wide debt collection contracts (with certain exceptions) 
for referrals to private collection contractors.
    (4) The revised 10 CFR part 1015 contains a new requirement that 
DOE and debtors exchange mutual releases of non-tax liabilities in all 
appropriate instances when a claim is compromised.
    (5) The revised 10 CFR part 1015 reflects the increase in the 
principal claim amount from up to $20,000 to up to $100,000, or such 
other amount as the Attorney General may direct, that DOE is authorized 
to compromise or to suspend or terminate collection activity thereon, 
without concurrence by the DOJ. In addition, the minimum amount of a 
claim that may be referred to the DOJ is increased from $600 to $2,500, 
or such other amount as the Attorney General may direct. The 
circumstances under which the DOJ will litigate when the claim amount 
does not meet the minimum threshold have not been changed.
    (6) The revised 10 CFR part 1015 reflects several new debt 
collection procedures under the DCIA, including, but not limited to:
    (a) The Treasury Regulations provide that agencies shall set forth 
in their regulations the circumstances under which interest and related 
charges will not be imposed for periods during which collection 
activity has been suspended pending agency review. The revised 10 CFR 
1015.212(h) provides that when a debtor requests a waiver or review of 
the debt, DOE will continue to accrue interest, penalties and 
administrative costs during the period collection activity is 
suspended. Upon completion of DOE's review, interest, penalties and 
administrative costs related to the portion of the debt found to be 
without merit will be waived;
    (b) Transfer or referral of delinquent debt to Treasury or 
Treasury-designated debt collection centers for collection, known as 
``cross-servicing'';
    (c) Mandatory credit bureau reporting, and;
    (d) Mandatory prohibition against extending Federal financial 
assistance in the form of a loan or loan guarantee to delinquent 
debtors.
    (7) The revised 10 CFR part 1015 requires one demand letter before 
taking appropriate collection actions. Previously DOE required three 
letters before taking further collection action.
    (8) A section on cost analysis has been added to 10 CFR 1015.212, 
Interest, penalties and administrative costs. This section ensures that 
the most cost effective alternative collection techniques are used with 
respect to the extensiveness of collection efforts, the evaluation of 
offers of compromise, and the establishment of minimum debt amounts 
below which collection efforts need not be taken.
    (9) A new Sec.  1015.207, Suspension or revocation of eligibility 
for loans and loan guarantees, licenses, permits, or privileges, has 
been added.

III. Discussion of Direct Final Rulemaking

    DOE is publishing this final rule without prior proposal because we 
view this as a noncontroversial amendment and anticipate no significant 
adverse comment. This rulemaking merely conforms DOE's regulations on 
debt collection to Treasury and DOJ standards and to procedures 
required by statute. However, in the ``Proposed Rules'' section of 
today's Federal Register, we are publishing a separate document that 
will serve as the proposal to amend 10 CFR part 1015 if significant 
adverse comment is filed. This rule will be effective on November 12, 
2003 without further notice unless we receive significant adverse 
comment by September 15, 2003. If DOE receives such an adverse comment 
on one or more distinct amendments, paragraphs, or sections of this 
direct final rule, DOE will publish a timely withdrawal in the Federal 
Register indicating which provisions will become effective and which 
provisions are being withdrawn due to adverse comment. Any distinct 
amendment, paragraph, or section of today's direct final rule for which 
we do not receive significant adverse comment will become effective on 
the date set forth in this direct final rule, notwithstanding any 
adverse comment on any other distinct amendment, paragraph, or section 
of today's rule. If significant adverse comment is received, we will 
address all public comments in a subsequent final rule. We will not 
institute a second comment period on this action. Any parties 
interested in commenting must do so at this time.

IV. Regulatory Analysis

A. Executive Order 12866

    Today's regulatory action has been determined not to be ``a 
significant regulatory action'' under Executive Order 12866, 
``Regulatory Planning and Review,'' (58 FR 51735, October 4, 1993). 
Accordingly, this action was not subject to review under that Executive 
Order by the Office of Information and Regulatory Affairs of OMB.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
preparation of an initial regulatory flexibility analysis for any rule 
that by law must be proposed for public comment, unless the agency 
certifies that the rule, if promulgated, will not have a significant 
economic impact on a substantial number of small entities. This rule 
amends 10 CFR part 1015 to incorporate revisions to the Federal Claims 
Collection Standards issued by Treasury and DOJ and to reflect changes 
to Federal debt collection procedures made by the Debt Collection 
Improvement Act of 1996 and the General Accounting Office Act of 1996. 
Most of the rule provisions relate to agency management and procedure 
or are stated as policy statements. This rule contains few, if any, new 
substantive requirements that directly apply to members of the public. 
Any incremental economic impact of this rule on small entities would be 
small. For these reasons, DOE certifies that this direct final rule 
will not have a significant

[[Page 48533]]

economic impact on a substantial number of small entities. Accordingly, 
DOE did not prepare a regulatory flexibility analysis for the rule.

C. Paperwork Reduction Act

    No new collection of information is imposed by this direct final 
rule. Accordingly, no clearance by OMB is required under the Paperwork 
Reduction Act (44 U.S.C. 3501, et seq.).

D. National Environmental Policy Act

    DOE has concluded that promulgation of this rule falls into a class 
of actions that would not individually or cumulatively have a 
significant impact on the human environment, as determined by DOE's 
regulations implementing the National Environmental Policy Act of 1969 
(42 U.S.C. 4321, et seq.). Specifically, this rule deals only with 
agency procedures and, therefore, is covered under the Categorical 
Exclusion in paragraph A6 to subpart D, 10 CFR part 1021. Accordingly, 
neither an environmental assessment nor an environmental impact 
statement is required.

E. Executive Order 13132

    Executive Order 13132 (64 FR 43255, August 4, 1999) imposes certain 
requirements on agencies formulating and implementing policies or 
regulations that preempt State law or that have federalism 
implications. Agencies are required to examine the constitutional and 
statutory authority supporting any action that would limit the 
policymaking discretion of the States and carefully assess the 
necessity for such actions. DOE has examined today's rule and has 
determined that it does not preempt State law and does not have a 
substantial direct effect on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government. No further 
action is required by Executive Order 13132.

F. Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of Executive Order 12988, 
``Civil Justice Reform,'' (61 FR 4729, February 7, 1996), imposes on 
Federal agencies the general duty to adhere to the following 
requirements: (1) Eliminate drafting errors and ambiguity; (2) write 
regulations to minimize litigation; and (3) provide a clear legal 
standard for affected conduct rather than a general standard and 
promote simplification and burden reduction. Section 3(b) of Executive 
Order 12988 specifically requires that Executive agencies make every 
reasonable effort to ensure that the regulation: (1) Clearly specifies 
the preemptive effect, if any; (2) clearly specifies any effect on 
existing Federal law or regulation; (3) provides a clear legal standard 
for affected conduct while promoting simplification and burden 
reduction; (4) specifies the retroactive effect, if any; (5) adequately 
defines key terms; and (6) addresses other important issues affecting 
clarity and general draftsmanship under any guidelines issued by the 
Attorney General. Section 3(c) of Executive Order 12988 requires 
Executive agencies to review regulations in light of applicable 
standards in section 3(a) and section 3(b) to determine whether they 
are met or it is unreasonable to meet one or more of them. DOE has 
completed the required review and determined that, to the extent 
permitted by law, this final rule meets the relevant standards of 
Executive Order 12988.

G. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written assessment of the 
effects of any Federal mandate in a proposed or final rule that may 
result in the expenditure by state, local, and tribal governments, in 
the aggregate, or by the private sector, of $100 million in any one 
year. The Act also requires a Federal agency to develop an effective 
process to permit timely input by elected officers of State, local, and 
tribal governments on a proposed ``significant intergovernmental 
mandate,'' and it requires an agency to develop a plan for giving 
notice and opportunity for timely input to potentially affected small 
governments before establishing any requirement that might 
significantly or uniquely affect small governments. The rule published 
today does not contain any Federal mandate; therefore, these 
requirements do not apply.

H. Treasury and General Government Appropriations Act, 1999

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family 
Policymaking Assessment for any proposed rule or policy that may affect 
family well-being. This rulemaking is not subject to a requirement to 
propose for public comment, and section 654 therefore does not apply.

I. Review Under the Treasury and General Government Appropriations Act, 
2001

    The Treasury and General Government Appropriations Act, 2001 (44 
U.S.C. 3516, note) provides for agencies to review most disseminations 
of information to the public under guidelines established by each 
agency pursuant to general guideline issued by OMB. OMB's guidelines 
were published at 67 FR 8452 (February 22, 2002), and DOE's guidelines 
were published at 67 FR 62446 (October 7, 2002). DOE has reviewed 
today's notice under the OMB and DOE guidelines and has concluded that 
it is consistent with applicable policies in those guidelines.

J. Review Under the Small Business Regulatory Enforcement Fairness Act

    As required by 5 U.S.C. 801, DOE will report to Congress on the 
promulgation of today's rule prior to its effective date. The report 
will state that it has been determined that the rule is not a ``major 
rule'' as defined by 5 U.S.C. 804(2).

List of Subjects

10 CFR Part 1015

    Administrative practice and procedure, Antitrust, Claims, Federal 
employees, Fraud penalties, Privacy.

10 CFR Part 1018

    Claims, Income taxes.

    Issued in Washington, DC, on August 6, 2003.
James T. Campbell,
Acting Director, Office of Management, Budget and Evaluation/Acting 
Chief Financial Officer.

0
For the reasons set out in the preamble, DOE hereby amends title 10 of 
the Code of Federal Regulations as follows:

PART 1015--COLLECTION OF CLAIMS OWED THE UNITED STATES

0
1. Part 1015 is revised to read as follows:

PART 1015--COLLECTION OF CLAIMS OWED THE UNITED STATES

Subpart A--General
Sec.
1015.100 Scope.
1015.101 Prescription of standards.
1015.102 Definitions and construction.
1015.103 Antitrust, fraud, tax, interagency, transportation account 
audit, acquisition contract, and financial assistance instrument 
claims excluded.
1015.104 Compromise, waiver, or disposition under other statutes not 
precluded.
1015.105 Form of payment.
1015.106 Subdivision of claims not authorized.

[[Page 48534]]

1015.107 Required administrative proceedings.
1015.108 No private rights created.
Subpart B--Standards for the Administrative Collection of Claims.
1015.200 Scope.
1015.201 Aggressive agency collection activity.
1015.202 Demand for payment.
1015.203 Collection by administrative offset.
1015.204 Reporting debts.
1015.205 Credit reports.
1015.206 Contracting with private collection contractors and with 
entities that locate and recover unclaimed assets.
1015.207 Suspension or revocation of eligibility for loans and loan 
guaranties, licenses, permits, or privileges.
1015.208 Administrative wage garnishment.
1015.209 Tax refund offset.
1015.210 Liquidation of collateral.
1015.211 Collection in installments.
1015.212 Interest, penalties, and administrative costs.
1015.213 Analysis of costs.
1015.214 Use and disclosure of mailing addresses.
1015.215 Federal salary offset.
1015.216 Exemptions.
Subpart C--Standards for Compromise of Claims.
1015.300 Scope.
1015.301 Scope and application.
1015.302 Bases for compromise.
1015.303 Enforcement policy.
1015.304 Joint and several liability.
1015.305 Further review of compromise offers.
1015.306 Consideration of tax consequences to the Government.
1015.307 Mutual releases of the debtor and the Government.
Subpart D--Standards for Suspending or Terminating Collection Activity.
1015.400 Scope.
1015.401 Scope and application.
1015.402 Suspension of collection activity.
1015.403 Termination of collection activity.
1015.404 Exception to termination.
1015.405 Disharge of indebtedness; reporting requirements.
Subpart E--Referrals to the Department of Justice.
1015.500 Scope.
1015.501 Referrals to the Department of Justice and the Department 
of the Treasury's Cross-Servicing Program.
1015.502 Prompt referral.
1015.503 Claims Collection Litigation Report.
1015.504 Preservation of evidence.
1015.505 Minimum amount of referrals to the Department of Justice.

    Authority: 31 U.S.C. 3701, 3711, 3716, 3717, 3718, and 3720B; 42 
U.S.C. 2201 and 7101, et seq.; 50 U.S.C. 2401 et seq.

Subpart A--General


Sec.  1015.100  Scope.

    This subpart describes the scope of the standards set forth in this 
part. This subpart corresponds to 31 CFR part 900 in the Department of 
the Treasury (Treasury) Federal Claims Collection Standards.


Sec.  1015.101  Prescription of standards.

    (a) The Secretary of the Treasury and the Attorney General of the 
United States issued regulations in 31 CFR parts 900-904, under the 
authority contained in 31 U.S.C. 3711(d)(2). Those regulations 
prescribe standards for Federal agency use in the administrative 
collection, offset, compromise, and the suspension or termination of 
collection activity for civil claims for money, funds, or property, as 
defined by 31 U.S.C. 3701(b), unless specific Federal agency statutes 
or regulations apply to such activities or, as provided for by Title 11 
of the United States Code, when the claims involve bankruptcy. The 
regulations in 31 CFR parts 900-904 also prescribe standards for 
referring debts to the Department of Justice (DOJ) for litigation. 
Additional guidance is contained in the Office of Management and 
Budget's (OMB) Circular A-129 (Revised), ``Policies for Federal Credit 
Programs and Non-Tax Receivables,'' the Treasury's ``Managing Federal 
Receivables,'' and other publications concerning debt collection and 
debt management. These publications are available from the Department 
of Energy (DOE) Office of Financial Policy, 1000 Independence Ave., 
SW., Washington, DC 20585.
    (b) Additional rules governing centralized administrative offset 
and the transfer of delinquent debt to Treasury or Treasury-designated 
debt collection centers for collection (cross-servicing) under the Debt 
Collection Improvement Act of 1996 (DCIA), Public Law 104-134, 110 
Stat. 1321, 1358 (April 26, 1996), are set forth in separate 
regulations issued by Treasury. Rules governing the use of certain debt 
collection tools created under the DCIA, such as administrative wage 
garnishment, also are set forth in separate regulations issued by 
Treasury. See generally, 31 CFR part 285.
    (c) DOE is not limited to the remedies contained in this part and 
may use any other authorized remedies, including alternative dispute 
resolution and arbitration, to collect civil claims, to the extent that 
such remedies are not inconsistent with the Federal Claims Collection 
Act, as amended, Public Law 89-508, 80 Stat. 308 (July 19, 1966), the 
Debt Collection Act of 1982, Public Law 97-365, 96 Stat. 1749 (October 
25, 1982), the DCIA or other relevant law. The regulations in this part 
do not impair DOE's common law rights to collect debts.
    (d) Standards and policies regarding the classification of debt for 
accounting purposes (for example, write-off of uncollectible debt) are 
contained in OMB's Circular A-129 (Revised), ``Policies for Federal 
Credit Programs and Non-Tax Receivables.''


Sec.  1015.102  Definitions and construction.

    (a) For the purposes of the standards in this part, the terms 
``claim'' and ``debt'' are synonymous and interchangeable. They refer 
to an amount of money, funds, or property that has been determined by 
an agency official to be due the United States from any person, 
organization, or entity, except another Federal agency. For the 
purposes of administrative offset under 31 U.S.C. 3716, the terms 
``claim'' and ``debt'' include an amount of money, funds, or property 
owed by a person to a State (including past-due support being enforced 
by a State), the District of Columbia, American Samoa, Guam, the United 
States Virgin Islands, the Commonwealth of the Northern Mariana 
Islands, or the Commonwealth of Puerto Rico.
    (b) A debt is ``delinquent'' if it has not been paid by the date 
specified in DOE's initial written demand for payment or applicable 
agreement or instrument (including a post-delinquency payment 
agreement), unless other satisfactory payment arrangements have been 
made.
    (c) In this part, words in the plural form shall include the 
singular and vice versa, and words signifying the masculine gender 
shall include the feminine and vice versa. The terms ``includes'' and 
``including'' do not exclude matters not listed but do include matters 
that are in the same general class.
    (d) Recoupment is a special method for adjusting debts arising 
under the same transaction or occurrence. For example, obligations 
arising under the same contract generally are subject to recoupment.
    (e) The term ``Department of Energy'' or ``DOE'' includes the 
National Nuclear Security Administration.


Sec.  1015.103  Antitrust, fraud, tax, interagency, transportation 
account audit, acquisition contract, and financial assistance 
instrument claims excluded.

    (a) The standards in this part relating to compromise, suspension, 
and termination of collection activity do not apply to any debt based 
in whole or in part on conduct in violation of the antitrust laws or to 
any debt involving fraud, the presentation of a false claim, or 
misrepresentation on the part of the debtor or any party having an 
interest in the claim. Only the DOJ has the

[[Page 48535]]

authority to compromise, suspend, or terminate collection activity on 
such claims. The standards in this part relating to the administrative 
collection of claims do apply, but only to the extent authorized by the 
DOJ in a particular case. Upon identification of a claim based in whole 
or in part on conduct in violation of the antitrust laws or any claim 
involving fraud, the presentation of a false claim, or 
misrepresentation on the part of the debtor or any party having an 
interest in the claim, DOE will promptly refer the case to the DOJ for 
action. At its discretion, the DOJ may return the claim to DOE for 
further handling in accordance with the standards in this part.
    (b) Part 1015 does not apply to tax debts.
    (c) Part 1015 does not apply to claims between Federal agencies. 
Federal agencies should attempt to resolve interagency claims by 
negotiation in accordance with Executive Order 12146 (3 CFR, 1980 
Comp., pp. 409-412).
    (d) Part 1015 does not apply to claims arising from the audit of 
transportation accounts pursuant to 31 U.S.C. 3726 which shall be 
determined, collected, compromised, terminated, or settled in 
accordance with regulations published under the authority of 31 U.S.C. 
3726 (see 41 CFR parts 101-141, administered by the Director, Office of 
Transportation Audits, General Services Administration) and are 
otherwise excepted from these regulations.
    (e)(1) Part 1015 does not apply to claims arising out of 
acquisition contracts, subcontracts, and purchase orders which are 
subject to the Federal Acquisition Regulations System, including the 
Federal Acquisition Regulation, 48 CFR subpart 32.6, and the Department 
of Energy Acquisition Regulation, 48 CFR subpart 932.6, and which shall 
be determined or settled in accordance with those regulations; and
    (2) Part 1015 does not apply to claims arising out of financial 
assistance instruments (e.g., grants, cooperative agreements, and 
contracts under cooperative agreements) and loans and loan guarantees, 
which shall be determined or settled in accordance with 10 CFR 600.26 
and 10 CFR 600.112(f).


Sec.  1015.104  Compromise, waiver, or disposition under other statutes 
not precluded.

    Nothing in this part precludes DOE from disposing of any claim 
under statutes and implementing regulations other than subchapter II of 
chapter 37 of Title 31 of the United States Code (Claims of the United 
States Government) and the standards in this part. In such cases, the 
specifically applicable laws and regulations will generally take 
precedence over this part.


Sec.  1015.105  Form of payment.

    Claims may be paid in the form of money or, when a contractual 
basis exists, the Government may demand the return of specific property 
or the performance of specific services.


Sec.  1015.106  Subdivision of claims not authorized.

    Debts may not be subdivided to avoid the monetary ceiling 
established by 31 U.S.C. 3711(a)(2). A debtor's liability arising from 
a particular transaction or contract shall be considered a single debt 
in determining whether the debt is one of less than $100,000 (excluding 
interest, penalties, and administrative costs) or such higher amount as 
the Attorney General shall from time to time prescribe for purposes of 
compromise or suspension or termination of collection activity.


Sec.  1015.107  Required administrative proceedings.

    DOE is not required to omit, foreclose, or duplicate administrative 
proceedings required by contract or other laws or regulations.


Sec.  1015.108  No private rights created.

    The standards in this part do not create any right or benefit, 
substantive or procedural, enforceable at law or in equity by a party 
against the United States, its agencies, its officers, or any other 
person, nor shall the failure of DOE, Treasury, the DOJ or other agency 
to comply with any of the provisions of this part be available to any 
debtor as a defense.

Subpart B--Standards for the Administrative Collection of Claims


Sec.  1015.200  Scope.

    The subpart sets forth the standards for administrative collection 
of claims under this part. This subpart corresponds to 31 CFR part 901 
of the Treasury Federal Claims Collection Standards.


Sec.  1015.201  Aggressive agency collection activity.

    (a) Heads of DOE Headquarters Elements and Field Elements or their 
designees must promptly notify the appropriate DOE finance office of 
claims arising from their operations. A claim will be recorded and 
controlled by the responsible finance office upon receipt of 
documentation from a competent authority establishing the amount due.
    (b) In accordance with 31 CFR Chapter IX parts 900-904 and this 
part, DOE will aggressively collect all debts arising out of 
activities. Collection activities shall be undertaken promptly with 
follow-up action taken as necessary.
    (c) Debts referred or transferred to Treasury, or Treasury-
designated debt collection centers under the authority of 31 U.S.C. 
3711(g), shall be serviced, collected, or compromised, or the 
collection action will be suspended or terminated, in accordance with 
the statutory requirements and authorities applicable to the collection 
of such debts.
    (d) DOE will cooperate with other agencies in its debt collection 
activities.
    (e) DOE will refer debts to Treasury as soon as due process 
requirements are complete, and should refer such debts no later than 
180 days after the debt has become delinquent. On behalf of DOE, 
Treasury will take appropriate action to collect or compromise the 
referred debt, or to suspend or terminate collection action thereon, in 
accordance with the statutory and regulatory requirements and 
authorities applicable to the debt and action. Appropriate action to 
collect a debt may include referral to another debt collection center, 
a private collection contractor, or the DOJ for litigation. (See 31 CFR 
285.12, Transfer of Debts to Treasury for Collection.) This requirement 
does not apply to any debt that:
    (1) Is in litigation or foreclosure;
    (2) Will be disposed of under an approved asset sale program;
    (3) Has been referred to a private collection contractor for a 
period of time acceptable to Treasury; or
    (4) Will be collected under internal offset procedures within three 
years after the debt first became delinquent.
    (f) Treasury is authorized to charge a fee for services rendered 
regarding referred or transferred debts. DOE will add the fee to the 
debt as an administrative cost (see Sec.  1015.212(c)).


Sec.  1015.202  Demand for payment.

    (a) Written demand as described in paragraph (b) of this section 
will be made promptly upon a debtor of the United States in terms that 
inform the debtor of the consequences of failing to cooperate with DOE 
to resolve the debt. Generally, one demand letter issued 30 days after 
the initial notice, bill, or written demand should suffice. When 
necessary to protect the Government's interest (for example, to prevent 
the running of a statute of limitations), written demand may be 
preceded by other appropriate actions under this Part, including 
immediate referral for litigation.

[[Page 48536]]

    (b) Demand letters will inform the debtor of:
    (1) The basis for the indebtedness and the rights, if any, the 
debtor may have to seek review within DOE;
    (2) The applicable standards for imposing any interest, penalties, 
or administrative costs;
    (3) The date by which payment should be made to avoid late charges 
(i.e., interest, penalties, and administrative costs) and enforced 
collection, which generally should not be more than 30 days from the 
date that the demand letter is mailed or hand-delivered;
    (4) The name, address, and phone number of a contact person or 
office within DOE;
    (5) DOE's intent to refer unpaid debts to Treasury for collection;
    (6) DOE's intent to authorize Treasury to add fees for services 
rendered as an administrative fee;
    (7) DOE's intent to authorize Treasury to utilize collection tools 
such as credit bureau reporting, private collection agencies, 
administrative wage garnishment, Federal salary offset, tax refund 
offset, administrative offset, litigation, and other tools, as 
appropriate, to collect the debt;
    (8) DOE's willingness to discuss alternative methods of payment;
    (9) The debtor's entitlement to consideration of a waiver, 
depending on applicable statutory authority; and
    (10) DOE's intent to suspend or revoke licenses, permits, or 
privileges for any inexcusable or willful failure of a debtor to pay 
such a debt in accordance with DOE regulations or governing procedures.
    (c) DOE will seek to ensure that demand letters are mailed or hand-
delivered on the same day that they are dated.
    (d) DOE will seek to respond promptly to communications from 
debtors, within 30 days whenever feasible, and will advise debtors who 
dispute debts to furnish available evidence to support their 
contentions.
    (e) Prior to the initiation of the demand process or at any time 
during or after completion of the demand process, if DOE determines to 
pursue, or is required to pursue, offset, the procedures applicable to 
offset should be followed (see Sec.  1015.203 of this subpart). The 
availability of funds or money for debt satisfaction by offset and 
DOE's determination to pursue collection by offset shall release DOE 
from the necessity of further compliance with paragraphs (a), (b), and 
(c) of this section.
    (f) Prior to referring a debt for litigation, DOE should advise 
each person determined to be liable for the debt that, unless the debt 
can be collected administratively, litigation may be initiated. This 
notification should comply with Executive Order 12988 (3 CFR, 1996 
Comp, pp. 157-163) and should be given as part of a demand letter under 
paragraph (b) of this section.
    (g) When DOE learns that a bankruptcy petition has been filed with 
respect to a debtor, before proceeding with further collection action, 
DOE should immediately seek legal advice from appropriate legal counsel 
concerning the impact of the Bankruptcy Code on any pending or 
contemplated collection activities. Unless counsel determines that the 
automatic stay imposed at the time of filing pursuant to 11 U.S.C. 362 
has been lifted or is no longer in effect, in most cases collection 
activity against the debtor should stop immediately.
    (1) After seeking legal advice, a proof of claim should be filed in 
most cases with the bankruptcy court or the Trustee. DOE will refer to 
the provisions of 11 U.S.C. 106 relating to the consequences on 
sovereign immunity of filing a proof of claim.
    (2) If DOE is a secured creditor, it may seek relief from the 
automatic stay regarding its security, subject to the provisions and 
requirements of 11 U.S.C. 362.
    (3) Offset is stayed in most cases by the automatic stay. However, 
DOE will seek legal advice from counsel to determine whether its 
payments to the debtor and payments of other agencies available for 
offset may be frozen until relief from the automatic stay can be 
obtained from the bankruptcy court. DOE also will seek legal advice 
from counsel to determine whether recoupment is available.


Sec.  1015.203  Collection by administrative offset.

    (a) Scope. (1) The term ``administrative offset'' has the meaning 
provided in 31 U.S.C. 3701(a)(1).
    (2) This section does not apply to:
    (i) Debts arising under the Social Security Act (42 U.S.C. 301, et. 
seq.) except as provided in 42 U.S.C. 404;
    (ii) Payments made under the Social Security Act (42 U.S.C. 301, 
et. seq.) except as provided for in 31 U.S.C. 3716(c) (see 31 CFR 
285.4, Federal Benefit Offset);
    (iii) Debts arising under, or payments made under, the Internal 
Revenue Code (see 31 CFR 285.2, Tax Refund Offset) or the tariff laws 
of the United States;
    (iv) Offsets against Federal salaries to the extent these standards 
are inconsistent with regulations published to implement such offsets 
under 5 U.S.C. 5514 and 31 U.S.C. 3716 (see 5 CFR part 550, subpart K, 
and 31 CFR 285.7, Federal Salary Offset);
    (v) Offsets under 31 U.S.C. 3728 against a judgment obtained by a 
debtor against the United States;
    (vi) Offsets or recoupments under common law, state law, or Federal 
statutes specifically prohibiting offsets or recoupments of particular 
types of debts; or
    (vii) Offsets in the course of judicial proceedings, including 
bankruptcy.
    (3) Unless otherwise provided for by contract or law, debts or 
payments that are not subject to administrative offset under 31 U.S.C. 
3716 may be collected by administrative offset under the common law or 
other applicable statutory authority.
    (4) Unless otherwise provided by law, administrative offset of 
payments under the authority of 31 U.S.C. 3716 to collect a debt may 
not be conducted more than 10 years after the Government's right to 
collect the debt first accrued, unless facts material to the 
Government's right to collect the debt were not known and could not 
reasonably have been known by the official or officials of the 
Government who were charged with the responsibility to discover and 
collect such debts. This limitation does not apply to debts reduced to 
a judgment.
    (5) In bankruptcy cases, DOE will seek legal advice from 
appropriate legal counsel concerning the impact of the Bankruptcy Code, 
particularly 11 U.S.C. 106, 362, and 553, on pending or contemplated 
collections by offset.
    (b) Mandatory centralized administrative offset. (1) As described 
in Sec.  1015.201(e), under the DCIA, DOE is required to refer all 
debts over 180 days delinquent to Treasury for purposes of debt 
collection (i.e., cross-servicing). Administrative offset is one type 
of collection tool used by Treasury to collect debts referred under 31 
CFR 285.12. Thus, by transferring debts to Treasury, DOE will satisfy 
the requirement to notify Treasury of debts for the purposes of 
administrative offset and duplicate referrals are not required. A debt, 
which is not transferred to Treasury for purposes of debt collection, 
however, may be subject to the DCIA requirement of notification to 
Treasury for purposes of administrative offset.
    (2) The names and taxpayer identifying numbers (TINs) of debtors 
who owe debts referred to Treasury as described in paragraph (b)(1) of 
this section shall be compared to the names and TINs on payments to be 
made by Federal disbursing officials. Federal disbursing officials 
include disbursing officials of Treasury, the Department of

[[Page 48537]]

Defense, the United States Postal Service, other Government 
corporations, and disbursing officials of the United States designated 
by the Secretary of the Treasury. When the name and TIN of a debtor 
match the name and TIN of a payee and all other requirements for offset 
have been met, the payment will be offset to satisfy the debt.
    (3) Treasury will notify the debtor/payee in writing that an offset 
has occurred to satisfy, in part or in full, a past due, legally 
enforceable delinquent debt. The notice shall include a description of 
the type and amount of the payment from which the offset was taken, the 
amount of offset that was taken, the identity of DOE as the creditor 
agency requesting the offset, and a contact point within DOE who will 
respond to questions regarding the offset.
    (4) As required in 31 CFR 901.3(b)(4), DOE will refer a delinquent 
debt to Treasury for administrative offset, only after the debtor:
    (i) Has been sent written notice of the type and amount of the 
debt, the intention of DOE to use administrative offset to collect the 
debt, and an explanation of the debtor's rights under 31 U.S.C. 3716; 
and
    (ii) Has been given:
    (A) The opportunity to inspect and copy DOE records related to the 
debt;
    (B) The opportunity for a review within DOE of the determination of 
indebtedness; and
    (C) The opportunity to make a written agreement to repay the debt.
    (iii) DOE may omit the procedures set forth in paragraph (a)(4) of 
this section when:
    (A) The offset is in the nature of a recoupment;
    (B) The debt arises under a contract as set forth in Cecile 
Industries, Inc. v. Cheney, 995 F.2d 1052 (Fed. Cir. 1993) (notice and 
other procedural protections set forth in 31 U.S.C. 3716(a) do not 
supplant or restrict established procedures for contractual offsets 
accommodated by the Contracts Disputes Act); or
    (C) In the case of non-centralized administrative offsets conducted 
under paragraph (c) of this section, DOE first learns of the existence 
of the amount owed by the debtor when there is insufficient time before 
payment would be made to the debtor/payee to allow for prior notice and 
an opportunity for review. When prior notice and an opportunity for 
review are omitted, DOE shall give the debtor such notice and an 
opportunity for review as soon as practicable and shall promptly refund 
any money ultimately found not to have been owed to the Government.
    (iv) When DOE previously has given a debtor any of the required 
notice and review opportunities with respect to a particular debt (see 
Sec.  1015.202), DOE need not duplicate such notice and review 
opportunities before administrative offset may be initiated.
    (5) When DOE refers delinquent debts to Treasury, DOE must certify, 
in a form acceptable to Treasury, that:
    (i) The debt(s) is (are) past due and legally enforceable; and
    (ii) DOE has complied with all due process requirements under 31 
U.S.C. 3716(a) and DOE regulations.
    (6) Payments that are prohibited by law from being offset are 
exempt from centralized administrative offset. Treasury may exempt 
classes of DOE payments from centralized offset upon the written 
request of the Secretary of DOE.
    (7) In accordance with 31 U.S.C. 3716(f), Treasury may waive the 
provisions of the Computer Matching and Privacy Protection Act of 1988 
concerning matching agreements and post-match notification and 
verification (5 U.S.C. 552a(o) and (p)) for centralized administrative 
offset upon receipt of a certification from DOE that the due process 
requirements enumerated in 31 U.S.C. 3716(a) have been met. The 
certification of a debt in accordance with paragraph (b)(5) of this 
section will satisfy this requirement. If such a waiver is granted, 
only the Data Integrity Board of Treasury is required to oversee any 
matching activities, in accordance with 31 U.S.C. 3716(g). This waiver 
authority does not apply to offsets conducted under paragraphs (c) and 
(d) of this section.
    (c) Non-centralized administrative offset. (1) Generally, non-
centralized administrative offsets are ad hoc case-by-case offsets that 
DOE conducts, at DOE's discretion, internally or in cooperation with 
the agency certifying or authorizing payments to the debtor. Unless 
otherwise prohibited by law, when centralized administrative offset is 
not available or appropriate, past due, legally enforceable non-tax 
delinquent debts may be collected through non-centralized 
administrative offset. In these cases, DOE may make a request directly 
to a payment-authorizing agency to offset a payment due a debtor to 
collect a delinquent debt. For example, it may be appropriate for DOE 
to request that the Office of Personnel Management (OPM) offset a 
Federal employee's lump sum payment upon leaving Government service to 
satisfy an unpaid advance.
    (2) DOE shall comply with offset requests by creditor agencies to 
collect debts owed to the United States, unless the offset would not be 
in the best interest of the United States with respect to the program 
of DOE, or would otherwise be contrary to law. Appropriate use will be 
made of the cooperative efforts of other agencies in effecting 
collection by administrative offset.
    (3) When collecting multiple debts by non-centralized 
administrative offset, DOE generally will apply the recovered amounts 
to those debts in accordance with the best interests of the United 
States, as determined by the facts and circumstances of the particular 
case, particularly the applicable statute of limitations.
    (d) Requests to OPM to offset a debtor's anticipated or future 
benefit payments under the Civil Service Retirement and Disability 
Fund. Upon providing OPM written certification that a debtor has been 
afforded the procedures provided in paragraph (b)(4) of this section, 
DOE may request OPM to offset a debtor's anticipated or future benefit 
payments under the Civil Service Retirement and Disability Fund (Fund) 
in accordance with regulations codified at 5 CFR 831.1801-831.1808. 
Upon receipt of such a request, OPM will identify and ``flag'' a 
debtor's account in anticipation of the time when the debtor requests, 
or becomes eligible to receive, payments from the Fund. This will 
satisfy any requirement that offset be initiated prior to the 
expiration of the time limitations referenced in paragraph (a)(4) of 
this section.
    (e) Review requirements. (1) For purposes of this section, whenever 
DOE is required to afford a debtor a review within the agency, DOE 
shall provide the debtor with a reasonable opportunity for an oral 
hearing when the debtor requests reconsideration of the debt and DOE 
determines that the question of the indebtedness cannot be resolved by 
review of the documentary evidence, for example, when the validity of 
the debt turns on an issue of credibility or veracity.
    (2) Unless otherwise required by law, an oral hearing under this 
section is not required to be a formal evidentiary hearing, although 
DOE will carefully document all significant matters discussed at the 
hearing.
    (3) This section does not require an oral hearing with respect to 
debt collection systems in which a determination of indebtedness rarely 
involves issues of credibility or veracity and DOE has determined that 
review of the written record is ordinarily an adequate means to correct 
prior mistakes.

[[Page 48538]]

    (4) In those cases when an oral hearing is not required by this 
section, DOE will accord the debtor a ``paper hearing,'' that is, a 
determination of the request for reconsideration based upon a review of 
the written record.


Sec.  1015.204  Reporting debts.

    (a) DOE may disclose delinquent debts to consumer reporting 
agencies in accordance with 31 U.S.C. 3711(e), the DCIA, the revised 
Federal Claims Collection Standards (31 CFR parts 900-904) published 
November 22, 2000, and other applicable authorities. DOE will ensure 
that all of the rights and protections afforded to the debtor under 31 
U.S.C. 3711(e) have been fulfilled. Additional guidance is contained in 
Treasury's ``Guide to the Federal Credit Bureau Program,'' revised 
October 2001.
    (b) As described in Sec.  1015.201(e), under the DCIA (31 U.S.C. 
3711(g)), DOE is required to transfer all debts over 180 days 
delinquent to Treasury for purposes of debt collection (i.e., cross-
servicing). As part of its regular debt collection procedures, Treasury 
will report debts it is collecting to the appropriate designated credit 
reporting agencies on behalf of DOE. A debt not transferred to Treasury 
for purposes of debt collection, however, may be subject to the DCIA 
requirement to report all non-tax delinquent consumer debts to credit 
reporting agencies.


Sec.  1015.205  Credit reports.

    (a) In order to aid DOE in making appropriate determinations as to 
the collection and compromise of claims; the collection of interest, 
penalties, and administrative costs; and the likelihood of collecting 
the claim, DOE may institute a credit investigation of the debtor at 
any time following receipt of knowledge of the claim.
    (b) As described in Sec.  1015.201(e), under the DCIA (31 U.S.C. 
3711(g)), DOE is required to transfer all debts over 180 days 
delinquent to Treasury for purposes of debt collection (i.e., cross-
servicing). As part of its regular debt collection procedures, Treasury 
may also institute a credit investigation of the debtor on behalf of 
DOE.


Sec.  1015.206  Contracting with private collection contractors and 
with entities that locate and recover unclaimed assets.

    (a) DOE may contract with private collection contractors in 
accordance with 31 U.S.C. 3718(d), the DCIA, the revised Federal Claims 
Collection Standards (31 CFR parts 900-904) published November 22, 
2000, and other applicable authorities.
    (b) As described in Sec.  1015.201(e), under the DCIA, DOE is 
required to transfer all debts over 180 days delinquent to Treasury for 
purposes of debt collection (i.e., cross-servicing) under 31 U.S.C. 
3711(g). As part of its regular debt collection procedures, Treasury 
may refer delinquent debts to private collection contractors on behalf 
of DOE.
    (c) DOE may enter into contracts for locating and recovering assets 
of the United States, such as unclaimed assets. DOE must establish 
procedures acceptable to Treasury before entering into contracts to 
recover assets of the United States held by a state government or a 
financial institution.
    (d) DOE may enter into contracts for debtor asset and income search 
reports. In accordance with 31 U.S.C. 3718(d), such contracts may 
provide that the fee a contractor charges DOE for such services may be 
payable from the amounts recovered, unless otherwise prohibited by 
statute.


Sec.  1015.207  Suspension or revocation of eligibility for loans and 
loan guaranties, licenses, permits, or privileges.

    (a) Unless waived by the Secretary of DOE or his designee, DOE may 
not extend financial assistance in the form of a loan, loan guarantee, 
or loan insurance to any person who DOE knows to be delinquent on a 
non-tax debt owed to a Federal agency. This prohibition does not apply 
to disaster loans. The authority to waive the application of this 
section may be delegated to the Chief Financial Officer and redelegated 
only to the Deputy Chief Financial Officer of DOE. DOE may extend 
credit after the delinquency has been resolved. See 31 CFR 285.13 
(Barring Delinquent Debtors From Obtaining Federal Loans or Loan 
Insurance or Guarantees).
    (b) In non-bankruptcy cases, DOE offices seeking the collection of 
statutory penalties, forfeitures, or other types of claims should 
consider the suspension or revocation of licenses, permits, or other 
privileges for any inexcusable or willful failure of a debtor to pay 
such a debt in accordance with DOE's regulations or governing 
procedures. The debtor should be advised in DOE's written demand for 
payment of DOE's ability to suspend or revoke licenses, permits, or 
privileges. Any DOE office making, guaranteeing, insuring, acquiring, 
or participating in loans should consider suspending or disqualifying 
any lender, contractor, or broker from doing further business with DOE 
or engaging in programs sponsored by DOE if such lender, contractor, or 
broker fails to pay its debts to the Government within a reasonable 
time or if such lender, contractor, or broker has been suspended, 
debarred, or disqualified from participation in a program or activity 
by another Federal agency. The failure of any surety to honor its 
obligations in accordance with 31 U.S.C. 9305 should be reported to 
Treasury. Treasury will forward to all interested agencies notification 
that a surety's certificate of authority to do business with the 
Government has been revoked by Treasury.
    (c) The suspension or revocation of licenses, permits, or 
privileges also should extend to Federal programs or activities that 
are administered by the states on behalf of the Federal Government, to 
the extent that they affect the Federal Government's ability to collect 
money or funds owed by debtors. Therefore, states that manage Federal 
activities, pursuant to approval from DOE, should ensure that 
appropriate steps are taken to safeguard against issuing licenses, 
permits, or privileges to debtors who fail to pay their debts to the 
Federal Government.
    (d) In bankruptcy cases, before advising the debtor of DOE's 
intention to suspend or revoke licenses, permits, or privileges, DOE 
will seek legal advice from counsel concerning the impact of the 
Bankruptcy Code, particularly 11 U.S.C. 362 and 525, which may restrict 
such action.


Sec.  1015.208  Administrative wage garnishment.

    (a) DOE may use administrative wage garnishment to collect money 
from a debtor's disposable pay to satisfy delinquent debt in accordance 
with section 31001(o) of the DCIA, codified at 31 U.S.C. 3720D. 
Treasury has issued regulations implementing the administrative wage 
garnishment provisions contained in the DCIA, at 31 CFR 285.11. DOE has 
adopted these regulations in their entirety.
    (b) As described in Sec.  1015.201(e) of this part, under the DCIA 
(31 U.S.C. 3711(g)), DOE is required to transfer all debts over 180 
days delinquent to Treasury for purposes of debt collection (i.e., 
cross-servicing). As part of its regular debt collection procedures, 
Treasury may use administrative wage garnishment on behalf of DOE.


Sec.  1015.209  Tax refund offset.

    (a) DOE may authorize the Internal Revenue Service (IRS) to offset 
a tax refund to satisfy delinquent debt in accordance with 31 U.S.C. 
3720A, Reduction of Tax Refund by Amount of Debt. Treasury has issued 
regulations implementing the tax refund offset as part of Treasury's 
mandatory centralized offset at 31 CFR 285.2, Offset of Tax Refund to 
Collect Past-Due, Legally

[[Page 48539]]

Enforceable Non-tax Debt. DOE has adopted 31 U.S.C. 3720A and 31 CFR 
285.2 in their entirety. The due process requirements of 31 U.S.C. 
3720A are contained in Sec. Sec.  1015.203(b)(4), and 1015.203(e) of 
this part.
    (b) As described in Sec.  1015.201(e) of this part, under the DCIA 
(31 U.S.C. 3711(g)), DOE is required to transfer all debts over 180 
days delinquent to Treasury for purposes of debt collection (i.e., 
cross-servicing). As part of its regular debt collection procedures, 
Treasury may use tax refund offset on behalf of DOE.


Sec.  1015.210  Liquidation of collateral.

    (a) DOE may liquidate security or collateral through the exercise 
of a power of sale in the security instrument or a nonjudicial 
foreclosure, and apply the proceeds to the applicable debt(s), if the 
debtor fails to pay the debt(s) within a reasonable time after demand 
and if such action is in the best interest of the United States. 
Collection from other sources, including liquidation of security or 
collateral, is not a prerequisite to requiring payment by a surety, 
insurer, or guarantor unless such action is expressly required by 
statute or contract.
    (b) When DOE learns that a bankruptcy petition has been filed with 
respect to a debtor, DOE will seek legal advice from counsel concerning 
the impact of the Bankruptcy Code, including, but not limited to, 11 
U.S.C. 362, to determine the applicability of the automatic stay and 
the procedures for obtaining relief from such stay prior to proceeding 
under paragraph (a) of this section.


Sec.  1015.211  Collection in installments.

    (a) Whenever feasible, DOE shall collect the total amount of a debt 
in one lump sum. If a debtor is financially unable to pay a debt in one 
lump sum, DOE may accept payment in regular installments. DOE will 
obtain a current financial statement showing the debtor's assets, 
liabilities, income, and expenses from debtors who represent that they 
are unable to pay in one lump sum, and independently verify such 
representations whenever possible. DOE may also obtain credit reports 
or other financial information to assess installment requests. DOE may 
use its own financial information form or a DOJ form, such as the 
Financial Statement of Debtor (OBD-500) (see Sec.  1015.302(g) of this 
part). When DOE agrees to accept payments in regular installments, it 
will obtain a legally enforceable, written agreement from the debtor 
that specifies all of the terms of the arrangement and that contains a 
provision accelerating the debt in the event of default.
    (b) The size and frequency of installment payments should bear a 
reasonable relation to the size of the debt and the debtor's ability to 
pay. If possible, the installment payments should be sufficient in size 
and frequency to liquidate the debt in three years or less.
    (c) Security for deferred payments should be obtained in 
appropriate cases. DOE may accept installment payments notwithstanding 
the refusal of the debtor to execute a written agreement or to give 
security, at DOE's option.


Sec.  1015.212  Interest, penalties and administrative costs.

    (a) Except as provided in paragraphs (g), (h), and (i) of this 
section, DOE shall charge interest, penalties and administrative costs 
on debts owed to the United States pursuant to 31 U.S.C. 3717. DOE 
shall mail or hand-deliver a written notice to the debtor, at the 
debtor's most recent address available to DOE, explaining DOE's 
requirements concerning these charges except where these requirements 
are included in a contractual or repayment agreement. These charges 
shall continue to accrue until the debt is paid in full or otherwise 
resolved through compromise, termination, or waiver of the charges.
    (b) DOE shall charge interest on debts owed the United States as 
follows:
    (1) Interest shall accrue from the date of delinquency, or as 
otherwise provided by law.
    (2) Unless otherwise established in a contract, repayment 
agreement, or by statute, the rate of interest charged shall be the 
rate established annually by Treasury in accordance with 31 U.S.C. 
3717. Pursuant to 31 U.S.C 3717, DOE may charge a higher rate of 
interest if it reasonably determines that a higher rate is necessary to 
protect the rights of the United States. DOE will document the 
reason(s) for its determination that the higher rate is necessary.
    (3) The rate of interest, as initially charged, shall remain fixed 
for the duration of the indebtedness. When a debtor defaults on a 
repayment agreement and seeks to enter into a new agreement, DOE may 
require payment of interest at a new rate that reflects the current 
value of funds to the Treasury at the time the new agreement is 
executed. Interest shall not be compounded, that is, interest shall not 
be charged on interest, penalties, or administrative costs required by 
this section. If, however, a debtor defaults on a previous repayment 
agreement, charges that accrued but were not collected under the 
defaulted agreement shall be added to the principal under the new 
repayment agreement.
    (c) DOE shall assess administrative costs incurred for processing 
and handling delinquent debts. The calculation of administrative costs 
should be based on actual costs incurred or upon estimated costs as 
determined by the assessing office.
    (d) Unless otherwise established in a contract, repayment 
agreement, or by statute, DOE shall charge a penalty, pursuant to 31 
U.S.C. 3717(e)(2), not to exceed six percent a year on the amount due 
on a debt that is delinquent for more than 90 days. This charge shall 
accrue from the date of delinquency.
    (e) DOE may increase an ``administrative debt'' by the cost of 
living adjustment in lieu of charging interest and penalties under this 
section. ``Administrative debt'' includes, but is not limited to, a 
debt based on fines, penalties, and overpayments, but does not include 
a debt based on the extension of Government credit, such as those 
arising from loans and loan guaranties. The cost of living adjustment 
is the percentage by which the Consumer Price Index for the month of 
June of the calendar year preceding the adjustment exceeds the Consumer 
Price Index for the month of June of the calendar year in which the 
debt was determined or last adjusted. Increases to administrative debts 
shall be computed annually. DOE will use this alternative only when 
there is a legitimate reason to do so, such as when calculating 
interest and penalties on a debt would be extremely difficult because 
of the age of the debt.
    (f) When a debt is paid in partial or installment payments, amounts 
received by DOE shall be applied first to outstanding penalties, second 
to administrative costs, third to interest, and last to principal.
    (g) DOE shall waive the collection of interest and administrative 
costs imposed pursuant to this section on the portion of the debt that 
is paid within 30 days after the date on which interest began to 
accrue. DOE may extend this 30-day period on a case-by-case basis. In 
addition, DOE may waive interest, penalties, and administrative costs 
charged under this section, in whole or in part, without regard to the 
amount of the debt, either under the criteria set forth in these 
standards for the compromise of debts, or if DOE determines that 
collection of these charges is against equity and good conscience or is 
not in the best interest of the United States.
    (h) When a debtor requests a waiver or review of the debt, DOE will 
continue

[[Page 48540]]

to accrue interest, penalties, and administrative costs during the 
period collection activity is suspended. Upon completion of DOE's 
review, interest, penalties, and administrative costs related to the 
portion of the debt found to be without merit will be waived.
    (i) DOE is authorized to impose interest and related charges on 
debts not subject to 31 U.S.C. 3717, in accordance with the common law.


Sec.  1015.213  Analysis of costs.

    DOE will prepare periodic comparisons of costs incurred and amounts 
collected. Data on costs and corresponding recovery rates for debts of 
different types and in various dollar ranges will be used to compare 
the cost effectiveness of alternative collection techniques, establish 
guidelines with respect to points at which costs of further collection 
efforts are likely to exceed recoveries, assist in evaluating offers in 
compromise, and establish minimum debt amounts below which collection 
efforts need not be taken.


Sec.  1015.214  Use and disclosure of mailing addresses.

    (a) When attempting to locate a debtor in order to collect or 
compromise a debt under Sec. Sec.  1015.100-105 of this part or other 
authority, DOE may send a request to Treasury to obtain a debtor's 
mailing address from the records of the IRS.
    (b) DOE may use mailing addresses obtained under paragraph (a) of 
this section to enforce collection of a delinquent debt and may 
disclose such mailing addresses to other agencies and to collection 
agencies for collection purposes.


Sec.  1015.215  Federal salary offset.

    (a) DOE may authorize Treasury to offset a Federal salary to 
satisfy delinquent debt in accordance with 5 U.S.C. 5514, Installment 
Deduction for Indebtedness to the United States; 5 CFR 550.1101 through 
550.1108, Collection by Offset from Indebted Government Employees; 31 
CFR parts 900-904, the revised Federal Claims Collection Standards; and 
31 CFR 285.7, Salary Offset. DOE shall ensure that all of the rights 
and protections afforded to the debtor under 5 U.S.C. 5514 and 31 CFR 
901.3 have been fulfilled. Claims due from Federal employees will be 
collected in accordance with DOE Order 2200.2B, Collection from Current 
and Former Employees for Indebtedness to the United States.
    (b) As described in Sec.  1015.201(e), under the DCIA (31 U.S.C. 
3711(g)), DOE is required to refer all debts over 180 days delinquent 
to Treasury for purposes of debt collection (i.e., cross-servicing). As 
part of its regular debt collection procedures, Treasury may use 
Federal salary offset on behalf of DOE.


Sec.  1015.216  Exemptions.

    (a) The preceding sections of this part, to the extent they reflect 
remedies or procedures prescribed by the Debt Collection Act of 1982 
and the DCIA, such as administrative offset, use of credit bureaus, 
contracting for collection agencies, and interest and related charges, 
do not apply to debts arising under, or payments made under, the 
Internal Revenue Code of 1986, as amended (26 U.S.C. 1, et seq.); the 
Social Security Act (42 U.S.C. 301, et seq.) except to the extent 
provided under 42 U.S.C. 404 and 31 U.S.C. 3716(c); or the tariff laws 
of the United States. These remedies and procedures, however, may be 
authorized with respect to debts that are exempt from the Debt 
Collection Act of 1982 and the DCIA, to the extent that they are 
authorized under some other statute or the common law.
    (b) This section should not be construed as prohibiting the use of 
these authorities or requirements when collecting debts owed by persons 
employed by agencies administering the laws cited in paragraph (a) of 
this section unless the debt arose under those laws.

Subpart C--Standards for the Compromise of Claims


Sec.  1015.300  Scope.

    This subpart sets forth the standards for the compromise of claims 
under this part. This subpart corresponds to 31 CFR part 902 of the 
Treasury Federal Claims Collection Standards.


Sec.  1015.301  Scope and application.

    (a) The standards set forth in this subpart apply to the compromise 
of debts pursuant to 31 U.S.C. 3711. DOE's Chief Financial Officer or 
designee or Heads of Field Elements or designees in field locations may 
exercise such compromise authority for debts arising out of activities 
of, or referred or transferred for collection services to, DOE when the 
amount of the debt then due, exclusive of interest, penalties, and 
administrative costs, does not exceed $100,000 or any higher amount 
authorized by the Attorney General.
    (b) Unless otherwise provided by law, when the principal balance of 
a debt, exclusive of interest, penalties, and administrative costs, 
exceeds $100,000 or any higher amount authorized by the Attorney 
General, the authority to accept the compromise rests with the DOJ. DOE 
will evaluate the compromise offer, using the factors set forth in this 
part. If an offer to compromise any debt in excess of $100,000 is 
acceptable to DOE, DOE shall refer the debt to the Civil Division or 
other appropriate litigating division in the DOJ using a Claims 
Collection Litigation Report (CCLR). DOE may obtain the CCLR from the 
DOJ's National Central Intake Facility. The referral shall include 
appropriate financial information and a recommendation for the 
acceptance of the compromise offer. DOJ approval is not required if DOE 
rejects a compromise offer.


Sec.  1015.302  Bases for compromise.

    (a) DOE may compromise a debt if the Government cannot collect the 
full amount because:
    (1) The debtor is unable to pay the full amount in a reasonable 
time, as verified through credit reports or other financial 
information;
    (2) The Government is unable to collect the debt in full within a 
reasonable time by enforced collection proceedings;
    (3) The cost of collecting the debt does not justify the enforced 
collection of the full amount; or
    (4) There is significant doubt concerning the Government's ability 
to prove its case in court.
    (b) In determining the debtor's inability to pay, DOE should 
consider relevant factors such as the following:
    (1) Age and health of the debtor;
    (2) Present and potential income;
    (3) Inheritance prospects;
    (4) The possibility that assets have been concealed or improperly 
transferred by the debtor; and
    (5) The availability of assets or income that may be realized by 
enforced collection proceedings.
    (c) DOE will verify the debtor's claim of inability to pay by using 
a credit report and other financial information as provided in 
paragraph (g) of this section. DOE will consider the applicable 
exemptions available to the debtor under state and Federal law in 
determining the Government's ability to enforce collection. DOE may 
also consider uncertainty as to the price that collateral or other 
property will bring at a forced sale in determining the Government's 
ability to enforce collection. A compromise effected under this section 
should be for an amount that bears a reasonable relation to the amount 
that can be recovered by enforced collection procedures, with regard to 
the exemptions available to the debtor and the time that collection 
will take.
    (d) If there is significant doubt concerning the Government's 
ability to

[[Page 48541]]

prove its case in court for the full amount claimed, either because of 
the legal issues involved or because of a bona fide dispute as to the 
facts, then the amount accepted in compromise of such cases should 
fairly reflect the probabilities of successful prosecution to judgment, 
with due regard given to the availability of witnesses and other 
evidentiary support for the Government's claim. In determining the 
litigative risks involved, DOE will consider the probable amount of 
court costs and attorney fees pursuant to the Equal Access to Justice 
Act, 28 U.S.C. 2412, that may be imposed against the Government if it 
is unsuccessful in litigation.
    (e) DOE may compromise a debt if the cost of collecting the debt 
does not justify the enforced collection of the full amount. The amount 
accepted in compromise in such cases may reflect an appropriate 
discount for the administrative and litigative costs of collection, 
with consideration given to the time it will take to effect collection. 
Collection costs may be a substantial factor in the settlement of small 
debts. In determining whether the cost of collecting justifies enforced 
collection of the full amount, DOE should consider whether continued 
collection of the debt, regardless of cost, is necessary to further an 
enforcement principle, such as the Government's willingness to pursue 
aggressively defaulting and uncooperative debtors.
    (f) DOE generally will not accept compromises payable in 
installments. This is not an advantageous form of compromise in terms 
of time and administrative expense. If, however, payment of a 
compromise in installments is necessary, DOE will obtain a legally 
enforceable, written agreement providing that, in the event of default, 
the full original principal balance of the debt prior to compromise, 
less sums paid thereon, is reinstated. Whenever possible, DOE also will 
obtain security for repayment in the manner set forth in subpart B of 
this part.
    (g) To assess the merits of a compromise offer based in whole or in 
part on the debtor's inability to pay the full amount of a debt within 
a reasonable time, DOE will, if feasible, obtain a current financial 
statement from the debtor, executed under penalty of perjury, showing 
the debtor's assets, liabilities, income, and expenses. DOE also may 
obtain credit reports or other financial information to assess 
compromise offers. DOE may use its own financial information form or 
may request suitable forms from the DOJ or the local United States 
Attorney's Office.


Sec.  1015.303  Enforcement policy.

    Pursuant to this part, DOE may compromise statutory penalties, 
forfeitures, or claims established as an aid to enforcement and to 
compel compliance, if DOE's enforcement policy in terms of deterrence 
and securing compliance, present and future, will be adequately served 
by DOE's acceptance of the sum to be agreed upon.


Sec.  1015.304  Joint and several liability.

    (a) When two or more debtors are jointly and severally liable, DOE 
will pursue collection activity against all debtors, as appropriate. 
DOE will not attempt to allocate the burden of payment between the 
debtors, but will proceed to liquidate the indebtedness as quickly as 
possible.
    (b) DOE will seek to ensure that a compromise agreement with one 
debtor does not release DOE's claim against the remaining debtors. The 
amount of a compromise with one debtor shall not be considered a 
precedent or binding in determining the amount that will be required 
from other debtors jointly and severally liable on the claim.


Sec.  1015.305  Further review of compromise offers.

    If DOE is uncertain whether to accept a firm, written, substantive 
compromise offer on a debt that is within DOE's delegated compromise 
authority, it may refer the offer to the Civil Division or other 
appropriate litigating division in the DOJ, using a CCLR accompanied by 
supporting data and particulars concerning the debt. The DOJ may act 
upon such an offer or return it to DOE with instructions or advice.


Sec.  1015.306  Consideration of tax consequences to the Government.

    In negotiating a compromise, DOE will consider the tax consequences 
to the Government. In particular, DOE will consider requiring a waiver 
of tax-loss-carry-forward and tax-loss-carry-back rights of the debtor. 
For information on discharge of indebtedness reporting requirements see 
Sec.  1015.405 of this part.


Sec.  1015.307  Mutual releases of the debtor and the Government.

    In all appropriate instances, a compromise that is accepted by DOE 
will be implemented by means of a mutual release, in which the debtor 
is released from further non-tax liability on the compromised debt in 
consideration of payment in full of the compromise amount and the 
Government and its officials, past and present, are released and 
discharged from any and all claims and causes of action arising from 
the same transaction that the debtor may have. In the event a mutual 
release is not executed when a debt is compromised, unless prohibited 
by law, the debtor is still deemed to have waived any and all claims 
and causes of action against the Government and its officials related 
to the transaction giving rise to the compromised debt.

Subpart D--Standards for Suspending or Terminating Collection 
Activity


Sec.  1015.400  Scope.

    The subpart sets forth the standards for terminating collection 
activity. This subpart corresponds to 31 CFR part 903 of the Treasury 
Federal Claims Collection Standards.


Sec.  1015.401  Scope and application.

    (a) The standards set forth in this subpart apply to the suspension 
or termination of collection activity pursuant to 31 U.S.C. 3711 on 
debts that do not exceed $100,000, or such other amount as the Attorney 
General may direct, exclusive of interest, penalties, and 
administrative costs, after deducting the amount of partial payments or 
collections, if any. Prior to referring a debt to the DOJ for 
litigation, DOE may suspend or terminate collection under this part 
with respect to debts arising out of activities of, or referred to, 
DOE.
    (b) If, after deducting the amount of any partial payments or 
collections, the principal amount of a debt exceeds $100,000, or such 
other amount as the Attorney General may direct, exclusive of interest, 
penalties, and administrative costs, the authority to suspend or 
terminate rests solely with the DOJ. If DOE believes that suspension or 
termination of any debt in excess of $100,000 may be appropriate, DOE 
shall refer the debt to the Civil Division or other appropriate 
litigating division in the DOJ, using the CCLR. The referral should 
specify the reasons for DOE's recommendation. If, prior to referral to 
the DOJ, DOE determines that a debt is plainly erroneous or clearly 
without legal merit, DOE may terminate collection activity regardless 
of the amount involved without obtaining DOJ concurrence.


Sec.  1015.402  Suspension of collection activity.

    (a) DOE may suspend collection activity on a debt when:
    (1) DOE cannot locate the debtor;
    (2) The debtor's financial condition is expected to improve; or

[[Page 48542]]

    (3) The debtor has requested a waiver or review of the debt.
    (b) Based on the current financial condition of the debtor, DOE may 
suspend collection activity on a debt when the debtor's future 
prospects justify retention of the debt for periodic review and 
collection activity and:
    (1) The applicable statute of limitations has not expired; or
    (2) Future collection can be effected by administrative offset, 
notwithstanding the expiration of the applicable statute of limitations 
for litigation of claims, with due regard to the 10-year limitation for 
administrative offset prescribed by 31 U.S.C. 3716(e)(1); or
    (3) The debtor agrees to pay interest on the amount of the debt on 
which collection will be suspended, and such suspension is likely to 
enhance the debtor's ability to pay the full amount of the principal of 
the debt with interest at a later date.
    (c)(1) DOE shall suspend collection activity during the time 
required for consideration of the debtor's request for waiver or 
administrative review of the debt if the statute under which the 
request is sought prohibits DOE from collecting the debt during that 
time. As indicated in Sec.  1015.212(h), DOE will continue to accrue 
interest, penalties, and administrative costs during the period 
collection activity is suspended.
    (2) If the statute under which the request is sought does not 
prohibit collection activity pending consideration of the request, DOE 
may use discretion, on a case-by-case basis, to suspend collection. 
Further, DOE ordinarily will suspend collection action upon a request 
for waiver or review if DOE is prohibited by statute or regulation from 
issuing a refund of amounts collected prior to DOE's consideration of 
the debtor's request. However, DOE will not suspend collection when DOE 
determines that the request for waiver or review is frivolous or was 
made primarily to delay collection.
    (d) When DOE learns that a bankruptcy petition has been filed with 
respect to a debtor, in most cases the collection activity on a debt 
must be suspended, pursuant to the provisions of 11 U.S.C. 362, 1201, 
and 1301, unless DOE can clearly establish that the automatic stay has 
been lifted or is no longer in effect. DOE will seek legal advice 
immediately from counsel and, if legally permitted, take the necessary 
legal steps to ensure that no funds or money is paid by DOE to the 
debtor until relief from the automatic stay is obtained.


Sec.  1015.403  Termination of collection activity.

    (a) DOE may terminate collection activity when:
    (1) DOE is unable to collect any substantial amount through its own 
efforts or through the efforts of others;
    (2) DOE is unable to locate the debtor;
    (3) Costs of collection are anticipated to exceed the amount 
recoverable;
    (4) The debt is legally without merit, or enforcement of the debt 
is barred by any applicable statute of limitations;
    (5) The debt cannot be substantiated; or
    (6) The debt against the debtor has been discharged in bankruptcy.
    (b) Before terminating collection activity, DOE will have pursued 
all appropriate means of collection and determined, based upon the 
results of the collection activity, that the debt is uncollectible. 
Termination of collection activity ceases active collection of the 
debt. The termination of collection activity does not preclude DOE from 
retaining a record of the account for purposes of:
    (1) Selling the debt, if Treasury determines that such sale is in 
the best interests of the United States;
    (2) Pursuing collection at a subsequent date in the event there is 
a change in the debtor's status or a new collection tool becomes 
available;
    (3) Offsetting against future income or assets not available at the 
time of termination of collection activity; or
    (4) Screening future applicants for prior indebtedness.
    (c) Generally, DOE shall terminate collection activity on a debt 
that has been discharged in bankruptcy, regardless of the amount. DOE 
may continue collection activity, however, subject to the provisions of 
the Bankruptcy Code, for any payments provided under a plan of 
reorganization. Offset and recoupment rights may survive the discharge 
of the debtor in bankruptcy and, under some circumstances, claims also 
may survive the discharge. For example, if DOE is a known creditor of a 
debtor, its claims may survive a discharge if DOE did not receive 
formal notice of the proceedings. DOE will seek legal advice from 
counsel if it believes it has claims or offsets that may survive the 
discharge of a debtor.


Sec.  1015.404  Exception to termination.

    When a significant enforcement policy is involved, or recovery of a 
judgment is a prerequisite to the imposition of administrative 
sanctions, DOE may refer debts for litigation even though termination 
of collection activity may otherwise be appropriate.


Sec.  1015.405  Discharge of indebtedness; reporting requirements.

    (a) Before discharging a delinquent debt (also referred to as a 
close out of the debt), DOE shall take all appropriate steps to collect 
the debt in accordance with 31 U.S.C. 3711(g), including, as 
applicable, administrative offset, tax refund offset, Federal salary 
offset, referral to Treasury, Treasury-designated debt collection 
centers or private collection contractors, credit bureau reporting, 
wage garnishment, litigation, and foreclosure. Discharge of 
indebtedness is distinct from termination or suspension of collection 
activity under Sec.  1015.400 of this part and is governed by the 
Internal Revenue Code. When collection action on a debt is suspended or 
terminated, the debt remains delinquent and further collection action 
may be pursued at a later date in accordance with the standards set 
forth in this subpart. When DOE discharges a debt in full or in part, 
further collection action is prohibited. Therefore, DOE will make the 
determination that collection action is no longer warranted before 
discharging a debt. Before discharging a debt, DOE must terminate debt 
collection action.
    (b) 31 U.S.C. 3711(i) requires DOE to sell a delinquent non-tax 
debt upon termination of collection action if Treasury determines such 
a sale is in the best interests of the United States. Since the 
discharge of a debt precludes any further collection action (including 
the sale of a delinquent debt), DOE may not discharge a debt until the 
requirements of 31 U.S.C. 3711(i) have been met.
    (c) Upon discharge of an indebtedness, DOE must report the 
discharge to the IRS in accordance with the requirements of 26 U.S.C. 
6050P and 26 CFR 1.6050P-1. DOE may request Treasury or Treasury-
designated debt collection centers to file such a discharge report to 
the IRS on DOE's behalf.
    (d) When discharging a debt, DOE must request that litigation 
counsel release any liens of record securing the debt.

Subpart E--Referrals to the Department of Justice


Sec.  1010.500  Scope.

    This subpart sets forth the standards for referrals to the 
Department of Justice. This subpart corresponds to 31 CFR part 904 of 
the Treasury Federal Claims Collection Standards.

[[Page 48543]]

Sec.  1015.501  Referrals to the Department of Justice and the 
Department of the Treasury's Cross-Servicing Program.

    (a) DOE may authorize Treasury to refer a delinquent debt to the 
DOJ for litigation in accordance with 31 U.S.C. 3711(g), the DCIA, the 
revised Federal Claims Collection Standards (31 CFR parts 900-904), and 
other applicable authorities. DOE shall ensure that all of the rights 
and protections afforded to the debtor under 31 U.S.C. 3711(e) have 
been fulfilled.
    (b) As described in Sec.  1015.201(e), under the DCIA (31 U.S.C. 
3711(g)), DOE is required to transfer all debts over 180 days 
delinquent to Treasury for purposes of debt collection (i.e., cross-
servicing). As part of its regular debt collection procedures, Treasury 
will refer debts to the DOJ for litigation on behalf of DOE.


Sec.  1015.502  Prompt referral.

    (a) If a debt is not referred to the DOJ through Treasury's cross-
servicing program, DOE shall promptly refer to the DOJ for litigation 
debts on which aggressive collection activity has been taken in 
accordance with Sec.  1015.200 of this part and that cannot be 
compromised, or on which collection activity cannot be suspended or 
terminated, in accordance with Sec. Sec.  1015.300 and 1015.400 of this 
part. DOE may refer those debts arising out of activities of DOE. Debts 
for which the principal amount is over $1,000,000, or such other amount 
as the Attorney General may direct, exclusive of interest and 
penalties, shall be referred to the Civil Division or other division 
responsible for litigating such debts at the DOJ, Washington, DC. Debts 
for which the principal amount is $1,000,000, or less, or such other 
amount as the Attorney General may direct, exclusive of interest or 
penalties, shall be referred to the DOJ's Nationwide Central Intake 
Facility as required by the CCLR instructions. Claims will be referred 
as early as possible, consistent with aggressive agency collection 
activity and the observance of the standards contained in the Federal 
Claims Collection Standards (31 CFR parts 900-904), and, in any event, 
well within the period for initiating timely lawsuits against the 
debtors. DOE shall make every effort to refer delinquent debts to the 
DOJ for litigation within one year of the date such debts last became 
delinquent. In the case of guaranteed or insured loans, DOE will make 
every effort to refer these delinquent debts to the DOJ for litigation 
within one year from the date the loan was presented to DOE for payment 
or re-insurance.
    (b) The DOJ has exclusive jurisdiction over the debts referred to 
it pursuant to this section. DOE shall refrain from having any contact 
with the debtor and shall direct all debtor inquiries concerning the 
claim to the DOJ. DOE shall notify the DOJ immediately of any payments 
credited by DOE to the debtor's account after referral of a debt or 
claim under this section. The DOJ shall notify DOE, in a timely manner, 
of any payments it receives from the debtor.


Sec.  1015.503  Claims Collection Litigation Report.

    (a) Unless excepted by the DOJ, DOE shall complete the CCLR (see 
Sec.  1015.301 of this part), accompanied by a signed Certificate of 
Indebtedness, to refer all administratively uncollectible claims to the 
DOJ for litigation. DOE shall complete all of the sections of the CCLR 
appropriate to each claim as required by the CCLR instructions and 
furnish such other information as may be required in specific cases.
    (b) DOE shall indicate clearly on the CCLR the actions it wishes 
the DOJ to take with respect to the referred claim. The CCLR permits 
DOE to indicate specifically any of a number of litigative activities 
which the DOJ may pursue, including enforced collection, judgment lien 
only, renew judgment lien only, renew judgment lien and enforce 
collection, program enforcement, foreclosure only, and foreclosure and 
deficiency judgment.
    (c) DOE also shall use the CCLR to refer claims to the DOJ to 
obtain the DOJ's approval of any proposals to compromise the claims or 
to suspend or terminate DOE collection activity.


Sec.  1015.504  Preservation of evidence.

    DOE will take care to preserve all files and records that may be 
needed by the DOJ to prove its claims in court. DOE ordinarily will 
include certified copies of the documents that form the basis for the 
claim in the packages referring its claims to the DOJ for litigation. 
DOE shall provide originals of such documents immediately upon request 
by the DOJ.


Sec.  1015.505  Minimum amount of referrals to the Department of 
Justice.

    (a) DOE shall not refer for litigation claims of less than $2,500, 
exclusive of interest, penalties, and administrative costs, or such 
other amount as the Attorney General shall from time to time prescribe. 
The DOJ promptly shall notify DOE if the Attorney General changes this 
minimum amount.
    (b) DOE shall not refer claims of less than the minimum amount 
unless:
    (1) Litigation to collect such smaller claims is important to 
ensure compliance with DOE's policies or programs;
    (2) The claim is being referred solely for the purpose of securing 
a judgment against the debtor, which will be filed as a lien against 
the debtor's property pursuant to 28 U.S.C. 3201 and returned to DOE 
for enforcement; or
    (3) The debtor has the clear ability to pay the claim and the 
Government effectively can enforce payment, with due regard for the 
exemptions available to the debtor under state and Federal law and the 
judicial remedies available to the Government.
    (4) DOE will consult with the Financial Litigation Staff of the 
Executive Office for United States Attorneys in the DOJ prior to 
referring claims valued at less than the minimum amount.

PART 1018--REFERRAL OF DEBTS TO IRS FOR TAX REFUND OFFSET

0
2. The authority citation for Part 1018 continues to read as follows:

    Authority: 31 U.S.C. 3720A; Pub. L. 98-369; 98 Stat. 1153.

PART 1018--[REMOVED]

0
3. Part 1018 is removed.

[FR Doc. 03-20378 Filed 8-13-03; 8:45 am]
BILLING CODE 6450-01-P